**COMPANY NUMBER: 1247918**
## **WORLD HABITAT**
**FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025**
**WORLD HABITAT IS A REGISTERED CHARITY CHARITY NUMBER: 270987**
## **WORLD HABITAT**
## **CONTENTS**
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|Page|
|Legal and Administrative Information|1|
|Trustees’ Report|2 – 20|
|Independent Auditor’s Report|21 - 24|
|Statement of Financial Activities|25|
|Balance Sheet|26|
|Cashflow|27 - 28|
|Notes to the Financial Statements|29 – 42|
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**WORLD HABITAT**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, are pleased to submit their forty sixth annual report, together with the audited financial statements for the year ended 31 December 2025.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
**Charity number** 270987 **Company number** 1247918
## **Principal Office**
Gresham Works Office 1 38 Market Street Leicester LE1 6DP
Tel 01530 510444 Email info@world-habitat.org Web www.world-habitat.org
## **Auditor**
Forvis Mazars LLP 6 Dominus Way, Meridian Business Park, Leicester, LE19 1RP
## **Bankers**
Barclays Bank Bishop Meadow Branch, Loughborough
## **Solicitors**
Freeths One Colton Square, Leicester, LE1 1QH
## **DIRECTORS AND TRUSTEES**
The directors of the charitable company (World Habitat) are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees.
The trustees serving during the year, and since the year-end, were as follows:
## **Elected trustees**
J Ayers - (reappointed on the 4th June 2025 to serve a further three-year term) F Bachelard-Bakal - (appointed on the 4th June 2025 to serve a three-year term) A Challis - (reappointed on the 4th June 2025 to serve a further three-year term) R Kabir - (reappointed on the 4th June 2025 to serve a further three-year term) S Macdonald - (resigned 4[th] June 2025) Nahid Majid - (appointed on the 4th June 2025 to serve a three-year term) N Murphy - (reappointed on the 4th June 2025 to serve a further three-year term) T Newby - (reappointed on the 4th June 2025 to serve a further three-year term) T Paillet - (appointed on the 4th June 2025 to serve a three-year term) J Richardson
## **Management team**
D Ireland – Chief Executive L Winterburn – Deputy CEO J Birch - Director of Finance P Latorre – Head of Communications
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**WORLD HABITAT**
## **TRUSTEES’ REPORT**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
World Habitat is a charitable company limited by guarantee incorporated on 9 March 1976. It is governed by a Memorandum and Articles of Association which were amended on the 26 September 2017 to change the name to World Habitat, change the charitable objects and amend the period of time trustees can serve on the board to a maximum of 9 years without special resolution. In the event of it being wound up, members are required to contribute an amount not exceeding £10.00.
## **Recruitment, appointment and training of trustees**
As set out in the Articles of Association trustees are appointed for a fixed-term of three years, save where the Board of Trustees sets a shorter period prior to appointment. Trustees shall cease to be members of the Board of Trustees at the end of the fixed-term but may be reappointed at the Annual General Meeting held in June. Trustees may serve as a member of the Board of Trustees for a continuous, or aggregate period, of 9 years without the support of a special resolution at a general meeting of the association. The Articles state that the number of trustees should not exceed nine. The members of the organisation are co-terminus with the trustees. All members of the organisation are circulated with invitations to nominate trustees prior to the AGM, advising them of the retiring trustees and requesting nominations for the AGM.
All members of the board of trustees give their time voluntarily and received no benefits from the charity. Any expenses reclaimed from the charity are set out in note 8 in the accounts.
During 2025 three new trustees joined the World Habitat board. We welcome Florence Bachelard-Bakal, Nahid Majid and Tina Paillet to the organisation.
Stuart Macdonald’s term of office came to an end on the 4[th] June 2025. We wish to express our thanks to Stuart for his contributions to the board of trustees over the past ten years.
There is a process in place for trustee appraisals to take place every 12 to 18 months. Appraisals are carried out by the Chair and feedback provided for trustees. General themes that emerge from trustee appraisals are reported back to the Board.
Trustees have approved a process for appraising the Chair. The process involves a self-appraisal and an interview carried out by trustees.
A revised trustee induction policy was approved by trustees in 2023. New trustees are provided with full information to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the charity. Opportunities are provided for new trustees to meet all employees and other trustees. Trustees are encouraged to attend appropriate external training events to facilitate the undertaking of their role and to meet regularly with the World Habitat staff team.
## **Diversity of the Board**
The diversity of the Board of Trustees is measured and reported on every twelve months, with the information last being collected in September 2025. During the last year we have recruited three new trustees to the board. This has increased the diversity of the board in a number of areas. The gender of the board now consists of two thirds females to one third male. We have also increased the ethnicity and religion of the board. The average age of the Board of Trustees is 54. The results were as follows:
## **Results of Trustee Equality and Diversity Monitoring 2025**
|**Gender**|**Ethnic group**|
|---|---|
|Female (6)
Male (3)
Prefer not to say ()|White English (3)
White British (1)
White European (1)
Mixed White & Asian (1)
Other White Background (1)
Bangladeshi (2)|
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## **WORLD HABITAT**
## **TRUSTEES’ REPORT**
## **Organisation**
The Board of Trustees, which can have up to nine members, administers the charity. The Board meets quarterly and there is one standing sub-committee covering investment and other financial matters. Working groups are established to address particular issues if needed. A Chief Executive is appointed by the trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the trustees, for operational matters including finance, employment and all activity relating to meeting the organisation’s objectives. During the year, our Chief Executive was Mr David Ireland, who joined the organisation in June 2014.
## **Related parties**
The charity has no closely related parties, although co-operates with a broad range of organisations both in the UK and internationally, in its various housing research and knowledge transfer activities.
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## **WORLD HABITAT**
## **TRUSTEES’ REPORT**
## **Risk management**
Risk management is reviewed by trustees at every board meeting.
The trustees have a risk management strategy, which comprises:
- an annual review of the risks the charity may face;
- the establishment of systems and procedures to mitigate those risks identified in the plan; and
- the implementation of procedures designed to minimise any potential impact on the Charity should those risks materialise.
Health and safety advisers and professional investment managers have been appointed, and a business continuity plan has been prepared to address the need to maintain a normal mode of operation in the event of an emergency. A key element in the management of financial risk is the setting of policies in respect of reserves and investments, which are regularly reviewed by trustees. A major risk identified in previous risk-mapping work is a major collapse of the financial markets and the impact that this would have on the income stream, which relies heavily on dividend income. Whilst the ongoing uncertainties in the global financial system continue to have an impact on our income, we are working closely with our investment advisers to keep the situation under review. The Board of Trustees delegates the Finance and Investment Sub-Committee to meet with our investment managers on a regular basis. The Finance and Investment Sub-Committee meetings normally take place three times a year. A full set of papers from the Finance and Investment Sub-Committee are provided to all trustees in order that there is a broad understanding of the financial position by all members.
## **Risks and uncertainties**
World Habitat operates in an increasingly complex and uncertain global environment. A number of strategic risks have the potential to affect our ability to deliver our mission and support partners effectively.
## **Geopolitical instability**
world’s population. This period saw a growing trend towards more authoritarian governments, protectionist policies, and reduced international cooperation, creating direct challenges for housing rights and civil society
Many of the certainties that underpinned international development and humanitarian work over the past eight decades were called into question, including long-standing international alliances, the role of multilateral institutions, and the stability of glo Geopolitical tensions have continued to rise with no end to the war on Ukraine and new conflicts arising in Iran and Lebanon.
During the year, the world’s largest international funder, USAID, was closed, and several countries, including the UK, reduced their international development spending. The most significant impact of this was felt by the many millions of people who were re
problems which caused many programmes to close or significantly scale back. This has resulted in fewer
to many international agencies. These cuts have significantly reduced the capacity of these organisations to act. We saw examples of this such as the closure of UNHCR’s Eastern Europe programme which directly affected two
Our own research shows that more than 60 countries have introduced restrictions on the operations of foreign funders, with these restrictions continuing to expand during 2025. In the countries where these laws have been applied it has become more difficult for us to support our partners. Tighter controls or outright bans on the movement of funds across borders limit our ability to get funds to where they are needed. Laws in some countries increase operational and compliance risks for our partners, and in some cases create adverse consequences to our value of being globally minded and open to good housing practice from anywhere in the World. The practical
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**WORLD HABITAT**
## **TRUSTEES’ REPORT**
– the answers to most housing challenges already exist and are continuously being improved. To quote Aesop, “Necessity is the mother of
community-led initiatives, celebrating excellence through the World Habitat Awards, and promoting knowledge
## **Conflict and displacement**
Ukraine, Gaza, and Sudan led to widespread loss of life, destruction of homes, and large-scale displacement. These crises have fuelled geopolitical instability, constrained civil society space, and diverted attention and resources away from long-
In 2025, World Habitat supported partners in countries neighbouring conflict zones, where the impacts of war have significantly affected their work. For example, we worked with partners across the Middle East to establish the Housing Justice Network, providing expertise and resources to strengthen communications, raise awareness, and bring cases of unlawful treatment to the attention of global audiences. We have also supported organisations in Central and Eastern Europe who have provided housing and support for refugees of the war on Ukraine.
## **Digitalisation and security risks**
Like many charities, World Habitat has become increasingly reliant on digital systems. This has brought substantial benefits, enabling more effective communication, reducing the need for travel, supporting flexible working, and lowering our carbon footprint. However, increased digital reliance also brings heightened risks,
To address these risks, World Habitat has invested in strengthening its cyber security. In 2025, we upgraded hardware and software, strengthened policies and procedures, and continued a programme of staff training. Our Cyber Essentials Plus accreditation w government-
We recognise that the cyber threat landscape continues to evolve rapidly. Emerging technologies, including artificial intelligence and quantum computing, are likely to be exploited by cyber criminals, making attacks more frequent and sophisticated. We will
## **Geopolitical Risks**
Geopolitical risks continued to rise through 2025 into 2026. The war on Ukraine continues to claim thousands of lives. The Iran war has introduced significant geopolitical and humanitarian risks that threaten regional stability and global economic security. Escalating tensions and military engagements have disrupted critical supply chains, particularly in energy markets, leading to volatility in energy prices and potential inflationary pressures worldwide.
The risk of broader regional involvement and proxy conflicts continues to grow, compounded by attacks on emergencies, displaced populations, and deepened regional instability, with ripple effects extending to global trade and security. Together, these developments present profound challenges to sustainable development and
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**WORLD HABITAT**
## **TRUSTEES’ REPORT**
## **Our Vision and Mission**
Our vision is a world in which everyone has a safe and secure home. In 2025, UN-Habitat reported that around 40% of the world’s population (2.8 billion people) are living without adequate housing. More than one billion people live in informal settlements or slums, and an estimated 318 million are homeless. These figures illustrate the huge scale of the global housing emergency, particularly as the absolute numbers continue to rise. Yet the numbers and proportion of people
their profile, enabling them to scale and to be adapted in new contexts. By bringing committed people and outstanding ideas together, World Habitat helps drive innovation into mainstream housing policy and practice,
- seek out and develop new and effective solutions to the world’s greatest housing
- support emerging innovative ideas and projects to develop and grow, so they help more invest in housing projects to help them reach more
- promote proven housing solutions and help to transfer them to places where they are needed
## **Our values**
## **Caring:**
challenging discrimination and proact
**Innovative:** . We matter,
**Independent:**
-
## **Our Operating Principles**
## **Climate focussed:**
least responsible for it. We will act to change that in our own work and the wider housing sector.
## **Globally minded:**
promote adaption and transfer of concepts across contexts and borders, fostering collaboration and free sharing of knowledge.
## **Collaborative:**
people who have direct experience of the issues we care about knowing they are well positioned to deliver sustainable change.
## **An agent for change**
We do this by providing opportunities for creative thinking and action.
## **The challenges we are facing**
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**WORLD HABITAT**
## **TRUSTEES’ REPORT**
## **Geopolitics**
reduced international development fundi
_“The funding cuts announced by President Trump in early 2025 created a global crisis for aid organisations and civil society groups. In recent years, more than 20% of the funding for the UN Refugee Agency (UNHCR) came - - -_
_- that is, 40 million forints._
_that are facing the consequen_
_emergency funding, advocating for_
_Vera Kovacs, co-_
_based on shared values and o vulnerable individuals, such as those displaced by conflict._
_project via an aid organisation. A_
_building became available, they moved from the guest flat to a 90 square metre flat on the second floor of the_
_ousing project._
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**WORLD HABITAT**
## **TRUSTEES’ REPORT**
## **Finding and Promoting Innovative Housing Solutions**
## **THE 2025 WORLD HABITAT AWARDS**
2025 marked the 40th anniversary of the World Habitat Awards. Over four decades, the Awards have been run by World Habitat in partnership with UN-
ised over 120 outstanding housing initiatives. The Awards have highlighted practical, transferable solutions that have gone on to influence housing policy and practice globally, including approaches such as Housing First, Community Led Housing, environmentally sustainable construction
To mark this significant anniversary, we published 40 Years of the World Habitat Awards, in partnership with UNondon focused on housing affordability and homelessness. The event brought together 150 delegates and speakers from around the world to share experience and ideas. We are grateful to the TPP Foundation for their generous support in sponsoring the conferenc
## _**Reflections on 40 years of the World Habitat Awards**_
“ _-Habitat because they highlight the essential role of . It is a home that is secure and connected to services, employment opportunities, and urban life. immediate housing needs but also promote inclusive and sustainable development, directly contributing to the - - -Habitat_
_- –_
_even international housing proj_
_people so open to sharing everything they have developed over years. The enabled us to convince the Belgian auth_
_“One of the solutions we discussed was community land trusts. We didn’t think it could happen, because it felt too distant from anything that had already happened. But after World Habitat facilitated visiting and learning from community work in Puerto Rico, and the success of the CLT model there, we had hope. We were thrilled, and from that moment we started a dialogue. We had interns interview them to present the model in Brazil. We began a relationship with them.”_
_Theresa Williamson, founding Executive Director of Catalytic Communities_
gold award trophies presented to the winners at World Habitat’s conference which took place in London in June.
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**WORLD HABITAT**
## **TRUSTEES’ REPORT**
**Hastings Commons, UK** –
_communityenabling Hastings Commons to share learnin -_
_to longon community-led housing, loc_
_Through peer exchange and public-_
_ocumentary about the initiative at_
_and has been there for eight years pport during_
_-_
–
ruction techniques, are helped to start micro businesses and set up to join the work force. At the same time, the trainees build homes for the ate environmentally friendly and
_-_
_oaches to housing and care, and share learning nationally and internationally._
_health screenings, physiotherapy, nutrition advice, and social activities, responding to the needs of older residents_
_community infrastructure, the pa and climate-resilient solutions._
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## **WORLD HABITAT**
## **TRUSTEES’ REPORT**
_, seven of her eight children also tragically died. Financial struggles and a need to care_
**La Fábrica, Argentina** -
-quality
_provide space for residents to organi It also supported an inauguration event during Urban , leaders of other grassroots organisations and out the severe social and economic_
**STOPA, Slovakia** -
_-year anniversary,_
_homelessness on the public agenda and foster collaboration. It also funded the development and distribution of a -based, scalable solutions to inform_
- -
**Heritage Foundation of Pakistan** – -to-
**Advance to Zero, Australia** –
-
**– El Salvador** –
In 2025 World Habitat commissioned an independent external evaluation of the World Habitat Awards and its to increase their impact and influence, and provide recommendations to improve processes and activities. It
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**WORLD HABITAT**
## **TRUSTEES’ REPORT**
-
Winners reported the awards process to be a positive experience. For Gold winners it exceeded their expectations, for non-gold winners it did not always meet them. Award winners overwhelmingly saw the award as prestigious global recognition. As a direct re
## **TACKLING STREET HOMELESSNESS IN 2025**
across the EU and the UK. Rising living costs and a persistent shortage of affordable housing continue to underscore the urgency for systemic ch
However, through our European End Street Homelessness Campaign, launched in 2015, we have seen plenty of evidence-based housing led responses to homel
## **Addressing Homelessness in Central and Eastern Europe**
In 2025 we worked with partners across Central and Eastern Europe (CEE) to advance housing-led responses to homelessness. In a region where homelessness is often highly visible yet undercounted, and where emergency responses still dominate, our work focused on strengthening local capacity, supporting evidence-based practice, and embedding long-term, rights-
Monthly peer-learning and coaching sessions provided a structured space for partners to share progress,
-
the City of Bucharest. Funded through World Habitat’s Innovation Fund, the findings provided critical evidence on the scale and profile of homelessness in the city, strengthening the case for coordinated, housing-led interventions and improved data-driven policymaking, and has led to annual counts as part of a wider European
Elsewhere in the region, partners in cities including Bratislava, Budapest, and Pula continued to develop and refine strategies focused on prevention, Housing First–inspired models, and cross-
Homes Association – FSHA), strengthening both frontline delivery and longer-term systems change. Through our Innovation Fund, we helped FSHA set up ‘onboarding groups’ for new tenants, pilot innovative peer-supported practices, expand the role of mentors with lived experience, and develop a written protocol to improve
-
-based public awareness campaign, challenging stigmatising assumptions about
-led practice.
homelessness. This was followed by the development of a best practice guide for policy makers, sharing examples of successful housing-led models and approaches, alongside recommendations to drive ch
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## **WORLD HABITAT**
## **TRUSTEES’ REPORT**
towards shifting practice away from emergency responses and towards housing as a foundation for dignity,
## **International knowledge exchange**
funded From Street to Homes Association to attend the International Social Housing Festival in Dublin to deliver a workshop with us. Then later in Ju
to share experience of operating in complex political contexts. With support from the Westminster Homelessness -day study visit to London, co
Learning from the Campaign was further shared through UNANIMA International’s publication The Hidden Faces of Homelessness, reflecting on a decade of practice and contributing to broader advocacy on housing-led
representatives, to exchange practical experience of developing and delivering housing-
## **Partnerships and Collaboration**
Our impact in 2025 was made possible through strong partnerships with community organisations, NGOs,
## **Influencing Policy and Practice**
In the UK, a major focus was the Private Rented Sector (PRS) policy project, building on learning - - bringing together government, NGOs, and sector leaders to explore how the PRS can better meet the needs of people on low incomes and those with lived experience of homelessness. This work fed into sector-wide
of organizations advocating for community-led, non-profit housing models, such as cooperatives and Community Land Trusts, as key solutions to the European housing crisis. European Affordable Housing Plan
## **COMMUNITY-**
## **Supporting lasting solutions for informal settlements**
—home to
—
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**WORLD HABITAT**
## **TRUSTEES’ REPORT**
health and wellbeing of all urban
In 2025, World Habitat continued working with communities and partners worldwide to support safer, more secure resilience, inclusion, and rights-based
## **Across multiple regions, we supported grassroots organisations and housing movements to design, deliver, and advocate for solutions rooted in local knowledge and lived experience.**
-
- - -Habitat.
- **In Bangladesh, we supported the Council of Minorities** two refugee camps following prolonged government approval processes. With local legal and advocacy support in place, communities were able to strengthen land claims and engage more effectively with authorities, laying the - groundwork
## **Scaling Solutions**
We also worked with communications and advocacy partners to amplify impact, including collaboration with the - **International CLT Day,**
housing quality, secure tenure, influence policy, and build inclusive governance structures—enabling communities to move beyond individual housing
cooperative housing has historically been limited by legal, financial, and institutional barriers, our work focused on
, which connects initiatives across five Central partnerships needed to move from cooperative principles to deliverable housing projects. This included technical advice, peer learning, and targeted support to help cooperatives navigate complex regulatory and financing
**the City of**
**Pula and a local MOBA member organisation** , enabling a new cooperative housing development to move work together to deliver affordable, non-
Alongside project-level progress, World Habitat supported MOBA to strengthen
olicy
networks, supporting the exchange of learning and amplifying regional experience in international discussions on affordable housing. This helped e visible within broader debates on housing justice and non-
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## **WORLD HABITAT**
## **TRUSTEES’ REPORT**
By combining practical project support with network-building and policy engagement, World Habitat’s work in secure, affordable, and community-led
## **Learning and Reflecting on our Programmes**
Learning remained integral to all programme activity in 2025. Regular reflection with partners helped us assess
Delays in external approvals—such as those experienced in Bangladesh—reinforced the importance of flexibility
At the same time, the progress of partners such as STOPA in Slovakia, which combined public campaigning - -
-
-to-
## **OUR INVESTMENT IN UK COMMUNITIES**
## **Funding affordable homes in Leeds**
Leeds Community Homes (LCH), founded by World Habitat Award winners Canopy and Lilac, supports community-led housing across Leeds. Through a share offer, in which World Habitat invested £25,000, LCH raised £360,000 to buy 16 permanently affordable eco-homes in the Climate Innovation District.
The homes, completed in January 2024 after a redesign due to fire safety regulations, meet Passivhaus standards. Nine are discounted rentals; seven are sold at 60% of market value. LCH is now developing its next project and working to become a Registered Provider to scale its impact.
## **A legacy for the community of Coalville**
Although World Habitat is no longer based in the Leicestershire town of Coalville, the community will continue to have important significance for us, and we aim to leave a positive legacy there.
During 2025 we continued to improve and maintain Peter Elderfield Memorial Wood, the large piece of land that we developed in 2019 for community use, which we named after our founder. This beautiful, natural and biodiverse area can be freely used by the local population of Coalville and nearby town of Whitwick.
We handed over our previous Coalville headquarters building to Coalville CAN (CCAN),a local social enterprise, for the long-term benefit of the people of Coalville. In 2024 CCAN launched a community share offer to raise funds to buy the building. World Habitat invested £25,000 in the share offer, which achieved its target, and in early 2025 we completed the sale of the building CCAN.
## **Our land**
World Habitat owns a small portfolio of land in Leicestershire near Coalville. The land was bequeathed to the organisation when it was established in 1976. It is largely rented to local farmers and used for agricultural purposes. In the past some land has been sold and the proceeds invested to provide income to fund the charity’s activities.
In 2025 we made significant progress in assessing the viability of developing one of these pieces of land for an exemplar housing project. The aim is to develop environmentally excellent social housing as an exemplar for the
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**WORLD HABITAT**
## **TRUSTEES’ REPORT**
social housing sector. During 2025 we undertook a number of surveys of the land and underlying geology. We entered into negotiations with a local social housing provider to lead the development.
## **Tackling the Climate Crisis: Our Progress in 2025**
World Habitat recognises the climate crisis as a major threat to safe and secure housing. In 2025, we deepened
In 2024 we approved a new carbon reduction policy, committing to cut emissions by at least 5% annually 47.37
Since 2017 we have offset our unavoidable carbon emissions through buying credits from the Nubian Vault constructs earth buildings (replacing the need to build concrete buildings) across the Sahel in Burkina Faso, Mali, - credits in the Gold Standard-
In 2025 we won a Planet Mark milestone award for reducing our emissions by at least 5% for five consecutive years. We are signatories to the Funder Commitment on Climate Change. These frameworks ensure accountability, continuous improvement, and collaborat
Trustees have adopted an ethical investment policy that amongst other restrictions precludes us from investing in any activity that is incompatible with the 2015 Paris Agreement to limit the increase in global average temperature to well below 2°C and to p the Cazenove Sustainable Multi-Asset Fund and Sarasin Climate Active Endowments Fund. While we do not 3,849 1,885 tCO
Finally, we recognise that those most affected by climate change are often least responsible. In 2025, we prioritised support for climate-vulnerable communities, balancing carbon reductions with housing resilience. This included preparing to adjust methods where lower-
## **Equality, Diversity and Inclusion**
The Trustees are committed to promoting equality, diversity and inclusion across all areas of World Habitat’s work and to ensuring that these principles are reflected in the organisation’s governance, policies and practices. During the year, the Board made significant progress in improving its own diversity. New trustees brought greater diversity and a broader range of perspectives, skills and professional expertise to the charity.
World Habitat retained the Investors in Diversity Silver Award for Small Charities and was recognised by the Centre for Diversity as one of the UK’s top 100 most inclusive employers. These external accreditations provide independent assurance of the organisation’s progress and ongoing commitment to inclusive practice. Trustees also oversaw the continued review of policies, recruitment practices and ways of working to ensure they remain fair, transparent and accessible.
The Trustees recognise that equality, diversity and inclusion require continuous attention and ongoing improvement. They remain committed to building on the progress made, strengthening representation where possible, and ensuring that World Habitat’s work contributes to more equitable housing outcomes globally.
## **GOVERNANCE**
In 2023 World Habitat commissioned an independent external board effectiveness review. The review was carried out by The Centre for Charity Effectiveness at Bayes Business School. The review comprised interviews with all trustees and senior management observations of board meetings and a review of all of World Habitat’s policies and procedures. The review made a number of recommendations for improvements which were accepted by the board and developed into an action plan. All the recommendations of the action plan have been implemented.
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## **WORLD HABITAT**
## **TRUSTEES’ REPORT**
In 2018 World Habitat signed up to the Charity Code of Governance. This code is a practical tool to help charities and their trustees develop high standards of governance. The principles are based on, but go beyond, legal requirements. This code was used as the basis of the board effectiveness review. The trustees and Senior Management Team review our compliance with the code annually and will continue to do so to ensure that good governance is maintained and continually improved. Trustees agreed that we will publish any areas where we do not meet the standard in the annual report. Our 2025 internal review showed that there were no areas where we do not meet the standard.
## **AREAS OF LEARNING**
Not everything went according to plan in 2025. In line with our values, we are committed to being open about setbacks and to learning from them. During the year, our plans to develop land for exemplar social workings beneath the site. These findings significantly increased development costs and reduced nd redesigned our plans to address the issue responsibly.
## **LOOKING FORWARD**
organisation’s history and an opportunity to reflect on five decades of work advancing housing justice worldwide. We will be marking this an
provide a platform to highlight the importance of safe and secure housing, amplify the voices of our partners, and
housing solutions, with greater impact, for more people in housing need.
When planning activities for the year World Habitat’s trustees had due regard to guidance on public benefit produced by the Charity Commission. Our charitable activities focus on the prevention or relief of poverty, and the advancement of education for the
choices. Our work in operating and promoting the World Habitat Awards aims to fuel innovation and inspires others to adopt and adapt the best housing practice. The Awards also enable the best housing projects to scale up, expand and be replicated where they are needed most. This, we believe, will enable more people in housing-
Our Community-Led Housing work aims to create the conditions in which community led-housing can be implemented in new areas, scale-up and expand. This will provide greater provision and greater choice of low-
Our European End Street Homelessness campaign aims to first reduce, and then end, street homelessness in
Trustees believe undertaking our main activities described above fully meets the requirements of section 17 of
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**WORLD HABITAT**
## **TRUSTEES’ REPORT**
## **FINANCIAL REVIEW**
## **Overview of the year**
In 2024, the trustees carried out a detailed review of the charity’s activities and produced a strategic plan for the direction and activity of the charity for the following ten years (until December 2033). The implementation of the plan started during 2024.
The total income for the year was **£1,144,563** . This represents a 4.7 per cent reduction on the income in 2024 of **£1,200,591** . The decrease is primarily due to a reduction in rental income due to the sale of Memorial Square. The principal funding source is income received from financial investments **083,416** i.e. 94.7 per cent), with the remaining 5.4 per cent secured from grants, rental income, 40[th] Anniversary ticket sales and interest.
Investment income is received from funds on a total return basis. A total return approach focuses on the overall growth (capital appreciation + income) of a portfolio rather than just dividends or interest, allowing trustees to spend from capital gains while preserving the inflation-adjusted value of the endowment. This strategy offers greater flexibility for diversified, global investing and helps maintain sustainable income levels.
The amount of capital spent in 2025 was **£193,673** . Due to charity SORP rules this amount of income is recognised under other gains/losses on the statement of financial activities. Due to recognising this income below the net surplus/deficit means the accounts are showing a deficit for the year. If we include this amount of income with investment income, we would have generated a small surplus.
Expenditure in the year was **£1,310,131** . This was higher than income by **£165,568.** This included costs for renting the office at Gresham Works.
Funds have been applied in respect of research costs and in the governance and administration of the organisation, with 92 per cent of funds expended relating to charitable activities and 8 per cent to governance and administration.
## **Investment powers, policy and performance**
Under the Memorandum and Articles of Association, the charity has the power to make any investment that the trustees see fit. Investments are held to provide an income to further the objectives of the Foundation, both now and in the future. The investment policy has been amended to reflect the slight shift in emphasis towards income, rather than capital growth.
Capital appreciation of the investments continues to ensure that the value of the original gift is maintained in real terms, in the longer term, recognising that there will be short-term fluctuations due to changes in stock market values. World Habitat seeks to ensure that a sufficient income stream is generated to cover its current activities without incurring undue financial risk for the charity.
The income from the charity’s investments reduced by 5.80 per cent from **£1,176,691** in 2024 to **£1,111,533** in 2025. There was an increase of **£1,447,891** in the valuation of the World Habitat total investment portfolio at the year end from **£37,144,490** in 2024 to **£38,592,381** in 2025. This increase was mainly due to a recovery in the markets after the ongoing conflict between Russia and the Ukraine.
## **Key management personnel remuneration**
Key management personnel are defined in the Charity SORP as ‘ _those persons having authority and responsibility for planning, directing and controlling the activities of the charity, directly or indirectly, including any Directors of the charity_ ’. World Habitat trustees consider that key management personnel of the charity are: the trustees, the Chief Executive and all other members of the senior management team.
All trustees give up their time freely and no trustee remuneration was paid in the year. Details of trustee expenses are disclosed in note 8 to the accounts. Three employees received remuneration above £60,000.
Trustees are required to disclose all relevant interests and register them with the Chief Executive and, in accordance with the charity’s policy, withdraw from decisions where a conflict of interest arises. The pay of the senior management personnel is reviewed annually and normally increased in accordance with average earnings and set at market rates. The remuneration is also bench-marked with charities of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles.
17
**WORLD HABITAT**
## **TRUSTEES’ REPORT**
## **Reserves policy**
World Habitat operates within a comparatively low-risk funding environment, as it does not rely on any external financial support in delivering its charitable objectives. We fund virtually all of our activities from the revenue generated from the financial investments, land and property that we received as a gift in 1976.
As at 31[st] December 2025 the World Habitat investment portfolio is currently managed by two investment managers, Sarasin (42.0 per cent) and Schroders (58.0 per cent). World Habitat is committed to maintaining the value of the original gift in real terms.
This reserves policy has been developed as part of an ongoing integrated financial governance process which includes development of a strategic plan, a risk management policy and an investment policy.
In 2024, the trustees carried out a detailed review of the charity’s activities and produced a strategic plan for the direction and activity of the charity for the following ten years (until December 2033). Implementation of the plan started during 2024.
In the event of a collapse of the international financial markets, the organisation retains sufficient resources in readily accessible funds to meet its current operating obligations.
The value of reserves held by World Habitat as of 31[st] December 2025 was **£39,342,656** . This consisted of the following:
Designated Funds **£34,787,962** Revaluation Reserve **£2,753,083** General Unrestricted Funds **£1,801,611** Restricted Funds **£0**
## **Designated Funds**
Designated funds are made up of the income maintenance fund and gift maintenance. An income maintenance fund has been created to provide the charity with a portfolio of investment assets that will be managed to provide a sufficient level of income to finance the expenditure of the organisation in carrying out its objectives.
Transfers are made to this reserve of surpluses, generated from activities after providing for a level of unrestricted reserves reflecting six-months planned activity. The gift maintenance fund has been created to maintain the original gift from East Midlands Housing Association in real terms value.
## **Revaluation Reserve**
A revaluation reserve is maintained in respect of those amounts by which investments and other assets exceed their historical cost.
## **General Unrestricted Funds**
General unrestricted funds should represent approximately six-months planned activity. The balance of the funds as of 31[st] December 2025 is **£1,801,611.** This currently represents just over twelve months planned activity. This is acceptable in the current time due to the uncertainty around the impact on our investments from the ongoing conflicts in Ukraine and Gaza.
The reserves of World Habitat are held as a form of endowment in order to generate income for the organisation. The income provided should be sufficient to cover the charitable activities of the organisation so the capital is not diminished. World Habitat requires a minimum level of reserves of **£30m** to allow the charity to fund its core activities, any additional income generated above the required level will increase the money spent on the charitable aims of the organisation.
If the reserves of the organisation go below **£30m** then we would need to adjust our spending. If this was a shortterm dip, then we would review the dividends we receive, if the dip was long-term, we would look to review our future budget and strategy.
18
## **WORLD HABITAT**
## **TRUSTEES’ REPORT**
The Business Plan is reviewed on an annual basis, with both income and expenditure projected forward on an ongoing basis. This reserves policy is also subject to review on an annual basis and the World Habitat trustees will carry out this review after giving due consideration to its planned programme of activity and the advice of its financial advisers as to likely income levels, any associated risks and the broader investment climate.
19
**WORLD HABITAT**
## **TRUSTEES’ REPORT**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The Trustees are responsible for preparing the Annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Auditors**
Under the provisions of the Companies Act 2006, a resolution is no longer required at the Annual General Meeting to nominate the auditors for the coming year.
- The trustees who held office at the date of approval of this Annual Report, as set out above each confirm that:
- so far as they are aware, there is no relevant audit information (information required by the charity’s auditor in connection with preparing their report) of which the charity’s auditors are unaware; and
- as the directors of the charity the trustees have taken all the steps they ought to have taken, in order to make themselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.
## **EMPLOYEE INVOLVEMENT AND APPRECIATION**
All members of staff have been regularly consulted on issues of concern with regular staff meetings being held and have been kept informed on specific matters where necessary by the Chief Executive. The trustees meet with members of staff at the quarterly board meetings and staff members present their work to trustees at the meetings. Sincere thanks are expressed to all members of our staff for their dedicated service to the organisation during the year and to the excellent results that are being achieved as a result of their work.
This report has been prepared in accordance with the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP (FRS102)) and in accordance with the provisions applicable to companies entitled to smaller companies exemption.
**By order of the trustees**
**Mr Adam Challis 3 June 2026**
20
**WORLD HABITAT**
## **INDEPENDENT AUDITOR’S REPORT**
## **Independent auditor’s report to the trustees of World Habitat**
## **Opinion**
We have audited the financial statements of World Habitat (the ‘charity’) for the year ended 31 December 2025 which comprise of the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2025 and of its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the Trustees report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
21
## **WORLD HABITAT**
## **INDEPENDENT AUDITOR’S REPORT**
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ Report which includes the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Directors’ Report included within the Trustees’ Report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees’ Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemption in preparing the Trustees’ Report and from the requirement to prepare a Strategic Report.
## **Responsibilities of Trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 20, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
22
## **WORLD HABITAT**
## **INDEPENDENT AUDITOR’S REPORT**
Based on our understanding of the charity and its activities, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: Charities Act 2011, the Charities Statement of Recommended Practice, employment regulation and health and safety regulation, antimoney laundering regulations.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
- Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
- Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
- Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
- Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.
In addition, we evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to income recognition (which we pinpointed to the cut off assertion) and the use of restricted funds, significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
- Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud;
- Gaining an understanding of the internal controls established to mitigate risks related to fraud;
- Discussing amongst the engagement team the risks of fraud; and
- Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
23
**WORLD HABITAT**
## **INDEPENDENT AUDITOR’S REPORT**
## **Use of the audit report**
This report is made solely to the charity’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed.
## **Vishal Thakrar**
(Senior Statutory Auditor)
for and on behalf of Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
6 Dominus Way Meridian Business Park Leicester LE19 1RP Date:
24
**WORLD HABITAT**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2025**
|**Note**
**INCOME FROM**
Donations and legacies:
General grants
Charitable activities:
Grant income
3
Investments
4
Other trading activities:
**TOTAL**
**EXPENDITURE ON:**
Raising funds
Charitable activities
**TOTAL**
5
**NET INCOME**
**Transfers between funds**
**Other recognised gains**
_assets:_
Realised Profit/(Loss) on disposal of
Fixed Assets
Loss on disposal of investment
assets
Gains/(losses) on investment assets
10
**Net movement in funds**
**for the year**
**_Reconciliation of funds_**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**Funds**
**£**
-
2,091
1,111,533
30,939
1,144,563
120,328
1,189,803
1,310,131
(165,568)
-
(694)
(15,000)
1,798,023
1,616,761
37,725,895
39,342,656|**Restricted**
**Funds**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-|**Total**
**Funds**
**2025**
**£**
**-**
2,091
1,111,533
30,939
1,144,563
120,328
1,189,803
1,310,131
(165,568)
**-**
(694)
(15,000)
1,798,023
1,616,761
37,725,895
39,342,656|**Total**
**Funds**
**2024**
**£**
-
4,900
1,176,691
19,000|
|---|---|---|---|---|
|||||1,200,591|
|||||80,875
1,045,165|
|||||1,126,040|
|||||74,551
-
(2,025)
-
2,182,347|
|||||2,254,873|
|||||35,471,022|
||||||
|||||37,725,895|
The statement of financial activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities.
The notes on page 29-42 form part of these financial statements.
25
## **WORLD HABITAT**
## **BALANCE SHEET – COMPANY REGISTRATION NUMBER: 1247918**
|**Note**
**Fixed Assets**
Tangible Fixed Assets
11
Investments
12
**Current Assets**
Investments
13
Debtors
14
Cash in hand
**Creditors:**
Amounts falling due within one year
15
**Net Current Assets**
**Total Assets Less Current**
**Liabilities**
**Capital and Income Funds:**
_Unrestricted funds:_
Designated funds
17
Revaluation reserve
17
General unrestricted funds
17
_Restricted funds_|**£**
487,091
23,517
330,901
841,509
(97,716)
34,787,962
2,753,083
1,801,611|**2025**
**£**
6,482
38,592,381
38,598,863
743,793
39,342,656
39,342,656|**£**
291,657
26,283
481,342
799,282
(228,259)
35,758,716
-
1,967,179|**2024**
**£**
10,382
37,144,490|
|---|---|---|---|---|
|||||37,154,872
571,023|
|||||37,725,895|
|||||37,725,895
-|
|||||37,725,895|
The financial statements have been prepared in accordance with the provisions applicable to companies' subject to the small companies' regime under the Companies Act 2006 and with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP (FRS102)).
The financial statements on pages 25 to 42 were approved by the board of trustees on 3 June 2026 and signed on its behalf by:
**----- Start of picture text -----**
ADAM CHALLIS - CHAIR
**----- End of picture text -----**
26
**WORLD HABITAT**
## **CASHFLOW TO THE FINANCIAL STATEMENTS**
|**Notes**
**Cash flows from operating activities:**
Net cash provided by / (used in) operating
activities
(a)
**Cash flows from investing activities:**
**Returns on investments**
Dividends, interest and rents from investments
Purchase of property, plant and equipment
Proceeds from sale of investments
(Increase) / decrease on cash held on
investment
Proceeds from sale of investment property
Purchase of investments
Proceeds from sale of property, plant and
equipment
**Net cash provided by**
**activities**
**Change in cash and cash equivalents in the**
**reporting period**
**Cash and cash equivalents at the beginning**
**of the reporting period**
Cash and cash equivalents at the end of the
reporting period
**FOOTNOTES TO THE CASH FLOW**
**STATEMENT**
**Reconciliation of net outgoing**
**from operating activities**
Net income/expenditure for the reporting period
as per the statement of financial activities
_Adjustments for:_
Gains on investments
Less: dividends, interest & rents from
investments
Add: depreciation charges
Loss/(profit) on fixed asset disposal
Decrease in debtors
(Decrease)/Increase in creditors
Less: revaluation on Investment Property
Net cash inflow from operating activities|**2025**
**2024**
**£**
**£**
(1,398,145)
(929,374)
1,111,533
1,176,691
(3,527)
(6,978)
193,673
45,647
(195,434)
35,342
420,000
-
(278,541)
(186,650)
-
141
1,247,704
1,064,193|
|---|---|
||(150,441)
134,818
481,342
346,524|
||330,901
481,342|
||1,616,761
2,254,873
(1,783,023)
(2,182,347)
(1,111,533)
(1,176,691)
6,732
6,082
694
2,025
2,766
7,433
(130,542)
-
159,251
-
(1,398,145)
(929,374)|
27
## **WORLD HABITAT**
## **CASHFLOW TO THE FINANCIAL STATEMENTS**
|(b)|||
|---|---|---|
|Opening balance
Balance as at 31 December
Increase/(Decrease) in year||481,342
346,524
330,901
481,342
(150,441)
134,818|
28
**WORLD HABITAT**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **1 PRINCIPAL ACCOUNTING POLICIES**
The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding year.
## **Basis of Preparation and assessment of going concern**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
World Habitat meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
The trustees and Senior Management Team of World Habitat are aware of the risks associated with uncertainty in the stock market including a reduction in the value of our investments and dividend income. We will look to mitigate the risks by reviewing our future budgets and strategy where necessary. As a result, the trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
## **Funds Structure**
- Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Within unrestricted funds are a number of designated funds.
- Designated funds are unrestricted funds earmarked by the trustees for particular purposes. Included within designated funds is a revaluation reserve representing the restatement of investments and other assets at market values.
- Restricted funds are those funds where restrictions are imposed by the donor in respect of how the funds can be expended.
## **Incoming Resources**
Items of income are recognised and included in the accounts when all of the following criteria are met:
- The charity or its subsidiary have entitlement to the funds;
- any performance conditions attached to the item(s) of income have been met or are fully within the control of the charity or its subsidiary;
- there is sufficient certainty that receipt of the income is considered probable; and
- the amount can be measured reliably.
Interest on funds held is included upon notification of the interest paid or payable by the Bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.
29
**WORLD HABITAT**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **1**
## **Resources Expended**
Expenditure is recognised once there is a legal constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following headings:
- Costs of raising funds comprise the costs associated with generating income, consisting of investment manager’s fees, plus a proportion of support costs.
- Charitable expenditure comprises those costs incurred by the charity in achieving its charitable objectives, and their associated support costs. Research expenditure is included within the year in which it is incurred. Governance costs including those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity are included within charitable expenditure.
- Other expenditure represents those items not falling into any other heading.
Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates. Where research is commissioned over a period of time, the costs incurred are estimated based on the time elapsed as at the year end.
## **Grant Making**
Grants are made to third parties in furtherance of the charitable objectives of the Foundation. The grants are made after signing a grant agreement and accounted for where either the Trustees have agreed to pay the grant without condition and the recipient has a reasonable expectation that they will receive a grant, or any condition attaching to the grant is outside the control of the Foundation.
Support costs are allocated to monitoring grant activities as 10% of salary, employers NI and employers’ pension. All grant expenditure is recognised in the year and any unpaid at the year-end is recognised as a liability at the balance sheet date.
## **Allocation of Support Costs**
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include administrative costs, finance, personnel and premises expenses. Those costs that are not specific to an activity are apportioned on the basis of the time spent in the different categories as set out in note 6.
## **Termination Benefits**
Termination costs are included in the period in which the decision has be made and communicated to employees. The terminated costs are paid based on statutory levels.
## **Fixed Assets and Depreciation**
Freehold buildings are stated at market value less depreciation. There have been no indications that impairment has occurred and no impairment review has been carried out. All other fixed assets are stated at purchase price less depreciation. Depreciation is calculated to write off fixed assets over their estimated useful lives at the following annual rates:
Office and other equipment 25% of cost Motor vehicles 25% of cost
## **Investment Property**
Investment properties are included in the balance sheet at their market value. Depreciation is not charged on investment properties.
30
**WORLD HABITAT**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **1**
## **Mixed Use Property**
The charity has mixed use property, where it occupies part of the property and rents out the remainder. The proportion of the building that is considered to be investment property, is based on the number of floors occupied by the charity in relation to the number of floors rented out.
## **Fixed Asset Investments**
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
The Trust does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
## **Realised gains and losses**
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
## **Cash Flow Statement**
World Habitat has prepared a cashflow statement in accordance with FRS 102.
## **Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **Foreign currencies**
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the Balance Sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction.
## **Contributions to pension funds**
The company is a member of a defined contribution pension scheme. The amount charged through the statement of financial activities in respect of pension costs is the contributions payable in the year. In the past, the company also contributed to the Pensions Trust’s Flexible Retirement Plan further details of which are included in note 20.
## **Operating lease agreements**
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lesser are charged to the statement of financial activities on a straight line basis over the period of the lease.
## **Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their amortised cost. The financing charge to expenditure is at a constant rate calculated using the effective interest method.
31
**WORLD HABITAT**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **1**
## **CRITICAL ACCOUTING ESTIMATES AND AREAS OF JUDGEMENT**
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will by definition, seldom equal the related actual results. The Trustees have identified the valuation of investment properties as an area which involves critical accounting judgement or key sources of estimation uncertainty when determining the fair value of the investment properties.
In preparing these financial statements the Trustees have considered the valuation of all the investment properties and the estimations with regards to the carrying value of the investment properties. The Trustees have taken into account a number of factors including the age of the property/land, its marketability and the regional commercial market. All investment properties were valued by an external property and land valuer, Fisher German, who have appropriate experience and RICS registered qualifications to undertake the valuations. Fisher German last carried out valuations of the investment properties in November 2023.
## **2 LEGAL STATUS**
The charity is a company limited by guarantee registered in England and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The registered office is stated on the Legal and Administrative page.
## **3 CHARITABLE ACTIVITIES**
|**Grant Income:**
Rural Payments Agency
National Forest
In 2024, all of the income was to unrestricted funds.
**INVESTMENT INCOME**
**Listed:**
Dividends on unit trusts and Common Investment Funds
**Cash on Deposit:**
Interest received
**Other:**
Rental income|**2025**
**2024**
**£**
**£**
337
1,754
702
4,198
2,091
4,900|
|---|---|
||**2025**
**2024**
**£**
**£**
1,083,416
1,142,290
15,445
16,853
12,672
17,548
1,111,533
1,176,691|
## **4 INVESTMENT INCOME**
In 2024, all income from investments was unrestricted.
**Investment income is received from two funds on a total return basis. Further explanation on this can be found on page 12, under financial review. In the year the amount of capital spent from the funds was £193,673. This amount is not included in the investment income figure of £1,111,533 and is included under other gains /losses on the statement of financial activities.**
32
**WORLD HABITAT**
## **NOTES TO THE INCOME AND EXPENDITURE ACCOUNT**
## **5 RESOURCES EXPENDED**
|**Raising funds:**
Professional & investment fees
Support costs (see note 6)
**Charitable activities:**
Awards
Salaries and pensions
Research travel (overseas)
Research travel (UK)
Recruitment and training
Subscriptions
40thAnniversary costs – WH Awards
External research meetings –WH
External research meetings – Others
WH research meetings
Communications
Auditor’s remuneration and related costs
Support costs (see note 6)|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**2025**
**2024**
**£**
**£**
**£**
**£**
99,165
-
99,165
62,847
21,163
-
21,163
18,028|
|---|---|
||120,328
-
120,328
80,875
28,091
-
28,091
26,345
620,924
-
620,924
514,319
10,251
-
10,251
10,450
16,588
-
16,588
8,748
8,855
-
8,855
25,484
8,084
-
8.084
7,239
58,535
58,535
-
148,791
-
148,791
225,936
1,182
-
1,182
850
5,911
-
5,911
7,052
72,809
-
72,809
36,694
19,313
-
19,313
19,786
190,469
-
190,469
162,262|
||1,189,803
1,189,803
1,045,165
-
1,310,131
-
1,310,131
1,126,040|
In 2024, the unrestricted expenditure was £1,126,040.
## **6 SUPPORT COSTS**
The Charity allocates its support costs (all of which are unrestricted) as shown in the table below. Support costs are allocated on a basis consistent with the use of resources.
|**Overheads:**
Administrative salaries
Stationery, postage and telephone
Motor and travelling expenses
Miscellaneous expenses
Carbon Offsetting
Lease charges
Bank charges
Exchange Rate Variance
**Premises Expenses:**
Rent, Rates, heat and light
Repairs
Insurance
Depreciation|**Raising**
**funds**
**Charitable**
**activities**
**2025**
**Total**
**2024**
**Total**
**£**
**£**
**£**
**£**
8,863
79,764
88,627
77,226
169
1,524
1,693
1,681
346
3,109
3,455
2,293
128
1,157
1,285
1,754
170
1,535
1,705
1,638
-
-
-
-
28
46
248
411
276
457
629
4
2,578
23,201
25,779
27,959
6,988
62,897
69,885
49,081
1,174
10,564
11,738
11,943
673
6,059
6,732
6,082
21,163
190,469
211,632
180,290|
|---|---|
33
**WORLD HABITAT**
**NOTES TO THE INCOME AND EXPENDITURE ACCOUNT**
## **7 STAFF COSTS**
|**STAFF COSTS**||
|---|---|
|Wages and salaries
Social security costs
Employer pension costs|**2025**
**2024**
**£**
**£**
597,825
499,731
63,729
46,504
47,997
45,309|
||709,551
591,544|
|There were no settlement, severance and redundancy payments made in 2025 (2024:Nil)||
|**Employee numbers**
The average number of persons directly employed during the year was:
Research and development
Administration and support
The number of employees who received employee benefits (excluding
employer pension costs) of more than £60,000 was:
Earning between £60,000 and £70,000
Earning between £70,000 and £80,000
Earning between £80,000 and £90,000
Earning between £90,000 and £100,000
Earning between £100,000 and £110,000
Earning between £110,000 and £120,000
Total cost for the management team|**No.**
**No.**
9
9
2
2|
|---|---|
||11
11|
||**No.**
**No.**
0
2
0
0
0
1
0
0
0
0
1
0|
||**2025**
**2024**
**£**
**£**
396,538
348,321|
The management team cost £396,538 for 2025 is for a management team of 4 and £348,321 for 2024 is for a management team of 4. The key management are those listed on page 1. The total cost includes employer contributions of pension and national insurance.
34
**WORLD HABITAT**
## **NOTES TO THE INCOME AND EXPENDITURE ACCOUNT**
## **8 NET INCOM**
## **FOR THE YEAR**
**----- Start of picture text -----**
|||||
|---|---|---|---|
|2025|2024|
|£|£|
|This is stated after charging:|
|Operating lease rentals|58,964|59,041|
|Depreciation|6,732|6,082|
|Auditor’s remuneration:|
|-|Audit services|17,100|16,176|
|-|Non-audit services|0|0|
**----- End of picture text -----**
During the year ended 31 December 2025, travel expenses totalling £3,455 were paid to 9 trustees (2024: £2,292).
No remuneration was payable to members of the Board of Trustees during the year (2024: £Nil).
Trustee indemnity insurance is included in the total insurance cost of £11,739 (2024: £11,943) paid in December 2023.
The percentage of income arising outside the United Kingdom was 0% (2024: 0%).
## **9 TAXATION**
During the year the Charity didn’t receive anything subject to Corporation Tax.
## **Analysis of taxation charge in the year**
**----- Start of picture text -----**
|||
|---|---|
|2025|2024|
|£|£|
|-|-|
|Tax on profit on ordinary activities at 19%|
**----- End of picture text -----**
## **Factors affecting tax charge for period**
The difference between the tax assessed for the period and the tax assessed for the period and the standard rate of corporation tax are explained as follows
**----- Start of picture text -----**
||||
|---|---|---|
|2025|2024|
|£|£|
|Surplus/(deficit) on ordinary activities before tax|1,616,761|2,254,873|
|Standard rate of corporation tax in the UK|19.00%|19.00%|
|£|£|
|Items not subject to corporation tax|1,616,761|2,254,873|
|Under provision from previous periods|-|-|
|Tax on profit|-|-|
**----- End of picture text -----**
35
**WORLD HABITAT**
## **NOTES TO THE INCOME AND EXPENDITURE ACCOUNT**
**10**
**----- Start of picture text -----**
2025 2024
£ £
UNREALISED GAIN :
Market Value of Investments at year end 38,592,381 37,144,490
Original cost of Investments 35,839,298 35,787,295
2,753,083 1,357,195
Unrealised gains/(losses) on investments 1,797,962 2,182,348
Realised gains/(loss) on investments 61 (1,467)
Total gain/(loss) on investments 1,798,023 2,180,881
- -
Unrealised revaluation gain on investment property
Total gain/(loss) on investments 1,798,023 2,180,881
2025 2024
REALISED GAINS ON SALE OF INVESTMENTS: £ £
Proceeds 193,673 45,647
Historical Cost (193,612) (47,114)
Realised Gain in the year 61 (1,467)
Split between:
Gains realised in the year 61 -
-
Losses realised in the year (1,467)
Total realised gain/(loss) 61 (1,467)
11 TANGIBLE FIXED ASSETS
Office and
Other
Equipment Total
£ £
Cost or valuation:
At 1 January 2025 32,156 32,156
Additions 3,527 3,527
Disposals (926) (926)
At 31 December 2025 34,757 34,757
Depreciation:
At 1 January 2025 21,774 21,774
Depreciation written back on disposals (231) (231)
Depreciation for the year 6,732 6,732
At 31 December 2025 28,275 28,275
Net Book Value:
At 31 December 2025 6,482 6,482
At 31 December 2024 10,382 10,382
**----- End of picture text -----**
36
**WORLD HABITAT**
## **NOTES TO THE INCOME AND EXPENDITURE ACCOUNT**
## **12 INVESTMENTS**
|**At valuation:**
Freehold property
Unlisted investments
Listed investments|**2025**
**2024**
**£**
**£**
1,080,501
1,515,501
52,602
52,061
37,459,278
35,576,928|
|---|---|
||38,592,381
37,144,490|
All investments are held within the UK.
Investments are held in order to provide an investment return for the purposes of funding the charity’s activities.
## **Investment properties**
At 27 September 2023, Fisher German, Chartered Surveyors, prepared valuations of all of the Foundation’s investment properties. In the opinion of the Board of Trustees, the valuations represent the true market value of the land and properties held for investment purposes as at 31 December 2025.
The freehold property was sold in 2025 for £425,000.
All of the Freehold property is accounted for as an investment property.
|**Investment property**
At beginning of year
Additions
Disposals
-Revaluations
Historical cost at 31 December
**Investments**
At beginning of year
Acquisitions at cost
Disposals at opening book value
Net (loss) / gains on revaluation in the year
Market value at 31 December
Historical cost as at 31 December|**2025**
**2024**
**£**
**£**
1,515,501
1,515,501
-
(435,000)
-|
|---|---|
||1,080,501
1,515,501|
||76,492
109,418|
||35,628,989
33,307,105
278,541
186,650
(193,612)
(47,114)
1,797,962
2,182,348|
||37,511,880
35,628,989|
||35,762,806
35,677,877|
37
**WORLD HABITAT**
**NOTES TO THE INCOME AND EXPENDITURE ACCOUNT**
## **12**
These assets include indirect investments in listed securities, through a combination of Common Investment Funds and Unit Trusts. Included in listed investments are the following investments, which individually represent over 5% of the total year-end value of the investment portfolio:
|**Investment valuation and holding:**
Responsible Multi Asset Fund
Sarasin Climate Active Endowments Fund|**Quantity**
**of stock**
**held as at**
**31 Dec 25**
**Market**
**Value**
**2025**
**£**
**Market**
**Value**
**2024**
**£**
34,462,398
21,733,490
20,230,315
11,814,627
15,725,788
15,346,613|
|---|---|
All investments are carried at their fair value. Holdings in common investment funds and unit trusts are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).
The significance of financial instruments to the ongoing financial sustainability of the charity is considered in the financial review and investment policy and performance sections of the Trustees’ Annual Report. The main risk to the charity from financial instruments lies in the combination of uncertain investment markets and volatility in yield.
Liquidity risk is anticipated to be low as all assets are traded and the commitment to intervention by central banks and market regulators has continued to provide for orderly trading in the markets and so their ability to buy and sell quoted equities and stock is anticipated to continue. The charity‘s investments are traded in markets with good liquidity and high trading volumes.
The charity has no material investment holdings in markets subject to exchange controls or trading restrictions. The charity does not make use of derivatives and similar complex financial instruments as it takes the view that investments are held for their longer-term yield total return and historic studies of quoted financial instruments have shown that volatility in any particular 5-year period will normally be corrected.
## **13 CURRENT ASSET INVESTMENTS**
|**13**
**CURRENT ASSET INVESTMENTS**||
|---|---|
|Cash on deposit
**14**
**DEBTORS**
Prepayments|**2025**
**2024**
**£**
**£**
487,091
291,657|
||**2025**
**2024**
**£**
**£**
23,517
26,283
23,517
26,283|
38
**WORLD HABITAT**
## **NOTES TO THE INCOME AND EXPENDITURE ACCOUNT**
**15**
|Other taxes and social security
Grants Payable
Trade creditors
Other creditors|**2025**
**2024**
**£**
**£**
14,212
12,506
-
19,538
9,380
70
74,124
196,145
97,716
228,259|
|---|---|
The other creditors figure for 2024 includes a figure of £142,000 for the deposit for the sale of Memorial Square to Coalville CAN.
## **16 FINANCIAL INSTRUMENTS**
|**Financial assets**
Financial assets measured at fair value through income and expenditure|**2025**
**2024**
**£**
**£**
38,592,381
37,144,490
38,592,381
37,144,490|
|---|---|
Financial assets measured at fair value through income and expenditure compromise investment properties and investments.
## **17 UNRESTRICTED FUNDS**
**----- Start of picture text -----**
At 1 Jan Incoming Outgoing Gains/ At 31 Dec
Transfers
2025 Resources Resources 2025
£ £ £ £ £ £
Designated
Funds:
Revaluation - - - 1,782,329 970,754 2,753,083
reserve
Income 27,499,315 - - - (1,235,197) 26,264,118
maintenance
Gift maintenance 8,259,401 - - - 264,443 8,523,844
General Funds 1,967,179 1,144,563 (1,310,131) - - 1,801,611
-
37,725,895 1,144,563 (1,310,131) 1,782,329 39,342,656
**----- End of picture text -----**
## **Purposes of Designated Funds**
_**Revaluation Reserve**_ **–** The revaluation reserve fund represents the amounts by which investments and other assets exceed their historical cost.
_**Income Maintenance –**_ The income maintenance fund has been created to provide the charity with a portfolio of investment assets that will be managed to provide a sufficient level of income to finance the expenditure of the organisation in carrying out its objectives. The fund is maintained by the transfer of the balance of realised gains after the funding of the gift maintenance fund and providing sufficient general funds to reflect six months planned activity. A transfer of £264,443 was completed during the year due to the change in the value of the gift maintenance fund. There was also a transfer of £970,754 from the Revaluation Reserve. The net impact was a decrease of £1,235,197.
_**Gift Maintenance**_ **–** The gift maintenance fund has been created to maintain the original gift of £1,249,066 from East Midlands Housing Association in real terms value. The purpose of the original gift was to enable the generation of income to allow the charity to pursue and achieve its objectives. The underlying assets in which the funds are held are managed to do this. Maintenance of this fund is from realised gains on investment assets. A transfer of £264,443 was completed during the year.
39
## **WORLD HABITAT**
## **NOTES TO THE INCOME AND EXPENDITURE ACCOUNT**
**UNRESTRICTED FUNDS PRIOR YEAR**
**----- Start of picture text -----**
At 1 Jan Incoming Outgoing Gains/ At 31 Dec
Transfers
2024 Resources Resources 2024
£ £ £ £ £ £
Designated
Funds:
Revaluation - - - 2,180,322 (2,180,322) -
reserve
Income 25,523,236 - - - 1,976,079 27,499,315
maintenance
Gift maintenance 8,055,158 - - - 204,243 8,259,401
General Funds 1,892,628 1,200,591 (1,126,040) - 1,967,179
-
35,471,022 1,200,591 (1,126,040) 2,180,322 37,725,895
**----- End of picture text -----**
## **18 ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|Fixed assets
Investments
Current assets
Creditors
Provisions|**Restricted**
**funds**
**General**
**funds**
**Designated**
**&**
**Revaluation**
**funds**
**Total**
**2025**
**£**
**£**
**£**
**£**
-
6,482
-
6,482
-
1,080,501
37,511,880
38,592,381
-
812,344
29,165
841,509
-
(97,716)
-
(97,716)
-
-
1,801,611
37,541,045
39,342,656|
|---|---|
## **ANALYSIS OF NET ASSETS BETWEEN FUNDS PRIOR YEAR**
|Fixed assets
Investments
Current assets
Creditors
Provisions
**HANGES IN NET DEBT**
**Cash and cash equivalents**
Cash
Overdrafts
Cash equivalents|**Restricted**
**funds**
**General**
**funds**
**Designated**
**&**
**Revaluation**
**funds**
**Total**
**2024**
**£**
**£**
**£**
**£**
-
10,382
-
10,382
-
1,515,501
35,628,989
37,144,490
-
669,555
129,727
799,282
-
(228,259)
-
(228,259)
-
-
1,967,179
35,758,716
37,725,895|
|---|---|
||**At 1 Jan 2025**
**Cash flows**
**Other non-**
**cash**
**changes**
**At 31 Dec**
**2025**
**£**
**£**
**£**
**£**
481,342
(150,441)
-
330,901
-
-
-
-
291,657
195,434
-
487,091
772,999
44,993
-
817,992|
## **19 CHANGES IN NET DEBT**
40
**WORLD HABITAT**
**NOTES TO THE INCOME AND EXPENDITURE ACCOUNT**
## **20 PENSION SCHEME**
The charity operates a pension scheme for the benefit of employees and directors. The assets of the scheme are administered by trustees in a fund independent from those of the company.
Total employer contributions paid in the year amounted to £47,997 (2024: £45,309) as at 31 December 2025 there were contributions outstanding of £Nil (2024: £Nil).
World Habitat participates in the Flexible Retirement Plan and Ethical Fund that are both operated by the Pension Trust. They are both multi-employer pension plans and are available as a salary sacrifice scheme. In the year World Habitat paid £6,153 as employer AVCs. This represented the savings in NI contributions for employees signed up to the salary sacrifice scheme.
The Flexible Retirement Plan is a defined contribution fund and is compliant with auto-enrolment. The employee can select to invest in the default Target Date Fund or select their own funds.
The Ethical Fund is also a defined contribution fund and compliant with auto-enrolment requirements. Any funds paid into the Ethical Fund are invested in the Ethical Target Date Funds (TDFs), which enables members to invest in companies that meet globally recognised corporate responsibility standards.
The charities’ staging date for auto-enrolment was 1[st] July 2016.
## **21 LIMITED BY GUARANTEE**
The company is limited by guarantee and accordingly does not have issued share capital. Every member of the Association undertakes to contribute an amount not exceeding £10 to the assets of the association in the event of the same being wound up.
## **22 RELATED PARTY TRANSACTIONS**
There were no related party transactions in the year or prior year.
The payment of trustees’ expenses is disclosed in note 8.
## **23 COMMITMENTS UNDER OPERATING LEASES**
As at 31 December 2025 the charity had total commitments under non-cancellable operating leases as set out below.
|Operating leases which expire:
Within 1 year
Within 1 and 5 years|**2025**
**2024**
**£**
**£**
8,786
-
32,599
3,840
8,786
36,439|
|---|---|
The charity entered into an operating lease for 38 Market Street, Leicester, LE1 6DP, which will commence on 1[st] March 2026. As the lease was signed in January 2026, this represents a non-adjusting event under FRS102 section 32. Future minimum lease payments under the lease are expected to total £52,224 over the term of the agreement.
41
## **WORLD HABITAT**
## **NOTES TO THE INCOME AND EXPENDITURE ACCOUNT**
## **24 COMMITMENTS UNDER GRANT AGREEMENTS**
During the year to 31 December 2025 the charity made grant agreements as set out below.
|Grant agreements:
**EESHC**
Stopa Slovenska
UTCAROL
Udruga
**World Habitat Awards**
UrbaMonde – France
Yayasan
Energiesprong
Stopa Slovenska
Tanzania Women Architects for Humanity
Hastings Commons
MOI
**Global Community-led Housing**
Zadruga
Moba
Association of Urbamonde
Catalytic Communities
Al Falah
**Total Grants**|**2025**
**2024**
**£**
**£**
-
5,000
5,095
-
-
-
8,378
15,450
15,000
15,000
4,363
5,000
5,095
39,139
18,255
19,550
-
-
-
-
-
8,516
-
-
7,500
5,000
19,102
18,000
15,000
-
79,939
148,504|
|---|---|
All grants made in 2025 were to institutions. Grants to individuals is £nil.
Grants payable at the year-end were £0, this balance is included in creditors due within one year (note 15). The total grants for the year is included in expenditure on charitable activities on the statement of financial activities on page 20.
There are supports costs associated with monitoring the grants of £15,000. This is 10% of the salary for the individuals monitoring the grants.
The projects being funded in each programme area as follows:
## **EESHC**
The grants are to develop a number of programmes in cities across Europe to understand the scale and context of migrant homelessness. This includes a number of initiatives to build the publics understanding of homelessness.
## **World Habitat Awards**
The grant is to collectively increase impact, add value, and support organisations and communities around the world to implement the right to adequate housing. This will be done by firstly by identifying and sharing examples of housing solutions and secondarily, by enabling communities and other organisations to develop their own housing solutions.
## **Global Community-Led Housing**
The grants are to advance on co-operative housing development – with opportunities to secure access to knowledge, land, finance and advancements in terms of policy, legal, technical or environmental matters.
42